Anyone else cutting costs?

[leisa2003]

Well after re-reviewing my sales from last year and what I spent, I am finding no other way, but to cut back on packaging, shipping and FO's. (Couldn't believe what I spent on just packaging,..WOW!!)

I've decided to carry only 10 scents for candles/tarts. (This means I dropped down to 2 suppliers who are in my state now)- which is a good thing.

4-5 scents for b&b/soaps. ( NG for all my b&b fo's)

Now I'm wondering if it would save me $, if I stopped making clamshell tarts and just made molded tarts and put them into poly bags. Anyone else stop making clamshells?

Edited May 13, 2010 by leisa2003

[mparadise]

I stopped making clamshells as well. I live not too far from the Yankee flagship store so everyone around here wants the molded tarts because that is what they are used to seeing locally.

One thing I did a couple of years ago that has really helped get my packaging costs under control was to invest in a shrinkwrap system. Mine was about $300 but there are less expensive options out there. I bought the wand based system from National Shrinkwrap and LOVE how versatile it is. Instead of buying all different sized bags or cello film for soap, votives, pillars, gift baskets, dipped bears, etc I just use the shrink film to make custom sized bags/packaging for whatever I need at that moment. One roll of film ($80?) lasted me a year & a half and I use it ALOT. I had been spending a lot more than $80 on bags a year. The bonus is that is quicker to package things this way too now that I am used to it so it saves in labor time/costs too.

[jennyjo]

I would also review your pricing. You should be adding the packaging in to your price.(which I am sure you do) I would find other ways to cut costs than to skimp on packaging...the packaging sells the product. It's VERY important. On the other hand,I think the shipping and reducing your fragrance list are good choices. I have been trying to do the same. I order everything as local as I can. It's hard to stay away from all the FO though! I only have 10 fragrances right now...but it will be closer to 15 very shortly. I am going to try to keep it there.

[leisa2003]

I would also review your pricing. You should be adding the packaging in to your price.(which I am sure you do) I would find other ways to cut costs than to skimp on packaging...the packaging sells the product. It's VERY important. On the other hand,I think the shipping and reducing your fragrance list are good choices. I have been trying to do the same. I order everything as local as I can. It's hard to stay away from all the FO though! I only have 10 fragrances right now...but it will be closer to 15 very shortly. I am going to try to keep it there.

Yes, I do add all costs into the products. The only packaging I'm changing is the clamshells. I did also find (thanks to a friend on here),..a cheaper supplier for custom labels.

Edited May 13, 2010 by leisa2003

[Noodle]

I am for finding cheaper suppliers. I think this is the number 1 way to save money.

[Candybee]

I cut back last year and it worked out great for me. I cut my candle scents down to 12 and sold a ton of discontinued items at discount.

Now I change out my scents twice a year for Spring and Fall. Then add in about 3-4 seasonal scents for summer and Christmas only. Thats it. I take out any that did not sell well for the season so I never have more than 14-15 scents at any single time.

I also only do 2 size jars now; 12 oz and 16 oz. I used to do 4 oz, 8 oz, 16 oz, votives, tea lights, clamshells and tarts. It was just too much. Cutting back to only 2 candle sizes has helped tremendously and sales have picked up since I focus on packaging and scents that sell only for these two sizes.

Revising craft shows also helped. If it wasn't a money maker I drop it and I add in a couple new ones each year that I got good recos from other venders. I managed to add in a couple of great money making shows last year and have a couple new ones lined up for this year too.

[Lumina]

I dropped the clam shell packing and use a mold. People seem to like the different shapes.

These were all very good ideas...I think I carry too many scents... I will need to review what sold last year and stick with those. I have decided to do this full time now and will have the time to really make everything handmade even the tags will be stamped. I am trying to make a go of this and every little bit helps. Thanks to everyone on this form for their help.

Cindy

[SoapDiva]

This should be on-going, no?

I'm always looking for ways to cut costs without it affecting my product. Every January I assess and see where I spent too much money, where I can cut, drop or add various markets etc.

I would not be cutting packaging unless it's absolutely necessary.

Packaging and labeling is a HUGE selling point.

I am changing some packaging to give my customers better value (thats what I'm calling it), for instance I'm changing my bath salts from jars to coffee bags. However my customers will get a lot more product for the same price, or close to it. I'm also changing the way I sell bath truffles, instead of being individually wrapped like I've been doing for years, I've decided to move to a clam-shell to reduce my time in production.

I really really really need to cut down the number of scents I offer. I'm such a freaking FOHO.

[Noodle]

Packaging and labeling is a HUGE selling point.

I agree, but it can be cut. While you cannot possibly have poor packaging, if you are selling online particularly, the product must speak for itself in photos. I do not have expensive or elaborate packaging. My product is what sells to my customers. They like it online and give it a try. I think if you are doing shows, then packaging is more important. You do not have great photos and big descriptions to help you sell. People pass that table or booth and that packaging must be great. Online is a whole different market. People sit in their jammies and take time to browse. Great photography, great products, and reasonably priced products are SO important for internet sales. I think you have to really know your market and figure out where a cut works.

[number2of7]

Now I change out my scents twice a year for Spring and Fall. Then add in about 3-4 seasonal scents for summer and Christmas only. Thats it. I take out any that did not sell well for the season so I never have more than 14-15 scents at any single time.

This has been a plan of mine for some time....I just can't seem to get below 40-something scents Every time I think of discontinuing one, it starts to sell again!!

Because our customers have gotten used to a wide variety, I think a realistic goal would be to have no more than 25-30 fragrances. If I can get there, then perhaps I can whittle the list down even further. One can hope, right?

[leisa2003]

This has been a plan of mine for some time....I just can't seem to get below 40-something scents

Oh my,..I may have that many 1 oz samples (from testing), but no way do I have the funds to offer that many fragances.

Man, I wish I lived close to you, I would be coming to visit when you made candles. lol :smiley2:

[mparadise]

I totally agree that packaging and labeling is what sells product. You can have a great product but if your packaging looks horrible it will not sell.

That said, I honestly believe that switching to shrinkwrap was one of the best things I have done for my business. My soaps look 1000% better shrinkwrapped with a great label than they did when I first started and used bags or cling wrap. It just looks SO much better and it is much easier to clearly see the bar of soap. It took the focus off the pretty bow and put it were it belongs...on the soap! I still take that bar and do more elaborate things like making a set with a soap dish and spa washcloth with fancy ribbons, etc. But by making my own custom bags and outer packaging for sets rather than having a million different sized bags on my shelf that tie up $$. Plus when I make bags for gift baskets or sets I can shrink the bottom snuggly against the basket so the product is easily seen.

[number2of7]

Oh my,..I may have that many 1 oz samples (from testing), but no way do I have the funds to offer that many fragances.

Man, I wish I lived close to you, I would be coming to visit when you made candles. lol :smiley2:

Okay, then I won't tell you that I once offered over 100!! It's taken me 2 years to get it down to that 40-something

Oh, and if you lived closer, I'd let you come HELP me make the candles

[leisa2003]

Okay, then I won't tell you that I once offered over 100!! It's taken me 2 years to get it down to that 40-something

Oh, and if you lived closer, I'd let you come HELP me make the candles

lol...and I would!! :smiley2: